Taking all necessary precautions as a publicly traded company, the board of directors of Dalata Hotel Group is exploring all opportunities to enhance the company’s value for its current shareholders. This process would naturally involve a partial or full sale of the entire company’s capital.
Founded in 2007, Dalata Hotel Group has positioned itself as a major player in the four-star segment, primarily in the United Kingdom and Ireland. More recently, the company has undertaken an expansion into Continental Europe, aiming to further grow its portfolio in key metropolitan areas. The group is publicly traded on Euronext Dublin and the London Stock Exchange.
As of today, Dalata operates 56 urban hotels, including 30 owned properties valued at €1.7 billion and 23 leased hotels, with an average lease term of 29 years. The group operates under two primary brands: 27 Clayton Hotels and 26 Maldron Hotels. Additionally, Dalata manages three hotels in Dublin under management contracts: The Samuel Hotel, The Gibson Hotel, and Hotel 7.
A Highly Profitable Group with an Undervalued Stock Price
For 2024, Dalata reported revenue of €652 million, achieving an adjusted EBITDA of €234.5 million and an adjusted EBITDA (after rent) of €173.2 million.
However, the board of directors believes that the current share price (around €5.50), which values the group at approximately €1.2 billion, does not reflect the true value of its assets and operational performance. The potential sale of the company could unlock significant value currently overlooked by the market.
All strategic options are on the table—including a partial investment from a private equity fund, a full buyout, or a potential merger and acquisition with another hospitality group looking to expand its portfolio. Rothschild & Co has been appointed as financial advisor to oversee the strategic review, which may or may not lead to a formal takeover bid.
Securing the Capital to Achieve Dalata’s “2030 Vision”
John Hennessy, Chairman of Dalata’s Board, expects this announcement to attract interest from investors seeking an undervalued opportunity: “We firmly believe in our 2030 Vision, but securing capital is the key to making it a reality.”
Dermot Crowley, CEO, adds:
“Our goal is to reach 21,000 rooms by 2030. We have an exceptional management platform to deliver this vision, but we must raise additional capital. This strategic review will help us identify the best options to achieve that.”
With this announcement, Dalata has formally initiated a sale process, in compliance with the Irish Takeover Rules.
Strong Pipeline: 1,600 Rooms Already in Development
Dalata’s 21,000-room target by 2030 represents an 80% portfolio expansion, to be achieved through a combination of acquisitions and new hotel developments, while maintaining a balanced mix of owned and leased assets.
Since launching its 2030 Vision strategy, the group has added 910 rooms to its development pipeline, including:
- Acquisition of the Radisson Blu Hotel, Dublin Airport for €83 million (subject to regulatory approval);
- Lease agreement for a new Clayton Hotel on Old Broad Street, London;
- Acquisition of a second hotel in Edinburgh, which will be rebranded as Clayton Hotel Edinburgh.
In 2024, Dalata opened four new Maldron hotels, bringing its UK portfolio to over 5,000 rooms. The group has also announced a pipeline of 1,600+ additional rooms, including:
- Maldron Hotel Croke Park, Dublin
- Clayton Hotel St. Andrew Square, Edinburgh (currently under construction)
Promising Start to 2025
Dalata’s management remains optimistic about 2025, citing strong performance indicators:
- Like-for-like RevPAR is expected to be 2.5% higher than in Q1 2024.
- Dublin’s performance is particularly strong, with RevPAR up 5% year-over-year, following the absorption of new hotel supply in early 2024.
With rising air traffic forecasts and a strong events calendar, Dalata is well-positioned for continued growth in 2025.
